EXCISE DUTY

[SANTHANA KRISHNAN]

SIR

SAY, I AM A GEAR MANUFACTURER AND MY GEARS ARE SUPPLIED TO A VEHICLE MANUFACTURER WHO IN TURN EXPORTS HIS VEHICLE. AS A GEAR MANUFACTURER, AM I ELIGIBLE TO SOURCE MY INPUTS WITHOUT EXCISE DUTY (SINCE MY GEARS ARE GETTING EXPORTED ULTIMATELY)? ARE THERE ANY EXEMPTION RULES?

PL GUIDE ME

REGARDS

JR

AI Summary

Exemption for inputs to exported goods when exporter complies with prescribed export procedure, enabling duty relief.
A supplier of inputs for goods ultimately exported can supply without payment of excise duty if the purchaser (exporter) follows the prescribed export procedure and provides the necessary export documentation; otherwise the supplier must pay duty and the exporter may claim Cenvat credit and refund or claim rebate under the Central Excise rules. Obtaining appropriate transit/certificate forms from the exporter (CT-1/CT-3) is the practical compliance measure noted.